Hewlett-Packard seeks EU approval for $13.2 billion EDS acquisition

21 June 2008

Mumbai: Hewlett-Packard Co. has formally sought approval by the European Union regulators for its proposed acquisition of Electronic Data Systems Corporation for $13.2 billion. (See: HP set to acquire EDS for over $12 billion)

EDS will hold a special meeting for shareholders to vote on HP's $25 per share offer on 31 July at its Plano, Texas, headquarters.

EU's anti-trust authority, the European Commission, is also expected to rule on the deal by 25 July. The commission can also opt to extend the investigation by 90 working days.

HP, the world's largest technology company by revenue, paid $18.9 billion to acquire rival computer maker Compaq Computer Corporation in 2002.

An HP-EDS combine would help HP more than double its current revenue amidst slowing PC sales and help it compete with the likes of International Business Machines.

Hewlett-Packard, which gets about 15 per cent of its revenue from services, aims to take on IBM in storage devices, software and servers. IBM reported about $54.1 billion in services revenue last year - more than half its sales.